Social Capital - Research Paper Example

?Social Capital Social capital is the term used to describe the s, relationships, and norms” (What is, that determine the quality and quantity of the social interactions within a society. This is the social cohesion created by the social networks, which create the cohesion necessary for societies to develop and prosper economically (What is, 2011; Sirianni & Friedland, 2011). The term social capital includes neighborhood associations and other cooperatives that foster norms of reciprocity, facilitate cooperation and communication, replicate past collaborative successes, and creates the potentiality that opportunistic individuals will not progress or reap the future benefits created by the collective(Sirianni & Friedland, 2011). This analysis seeks to answer the research question ‘Can Social Capital be the “saving grace” of organizations or does it interfere and slow down, the success and growth of an organization?’ through an examination of the article “Social capital and management control systems: a study of a nongovernment organization” (Chenhall, Hall, & Smith, 2010). A review of additional literature, in addition to the source article, will provide collaborative details to provide support for the conclusion established. Research Question: Can Social Capital be the “saving grace” of organizations or does it interfere and slow down, the success and growth of an organization? Case Study: The case study by Chenhall, Hall, & Smith examined how elements of a management control system can either enhance or inhibit the bonding and bridging dimensions of social capital with potential consequences on both economic and cultural capital (2010, p.2). The study attempts to highlight and provide data to support the notion that management control systems can be contradictory as they relate to social capital. The concept of social capital is used to outline a distinctive approach to understanding the relationship between management control systems and the development of social connections in and between organizations (Chenhall, Hall, & Smith, 2010). The study additionally illustrates how formal belief systems and operational controls sustain strong interior relationships and also help to establish the case organization’s standing with peripheral organizations vital to external bridging (Chenhall, Hall, & Smith, 2010). However, there are also several limitations to the relevancies demonstrated by the study. The study was based on a limited number of interviews rather than in-depth observational data (Chenhall, Hall, & Smith, 2010). Additionally, the study indicates that efforts to use “financial controls interactively” to deal with issues of cost awareness were not successful due to the fact that they were interpreted as “incompatible” with natural advancements and threatened bonding (Chenhall, Hall, & Smith, 2010, p.2). Literature Review Social capital can be measured in a variety of ways, although obtaining a "true", definitive measurement is not possible (What is, 2011). The most popular definitions of social capital are multidimensional and incorporate numerous aspects of analysis into a comprehensive framework (What is, 2011). Attempts to measure the properties of “inherently ambiguous concepts” such as "community", "network" and "organization" has caused problems in establishing the concept of social capital (What is, 2011). Although a few long-standing surveys have been designed to gauge "social capital", they have left researchers to assemble indexes from a range of items, like “measures of trust in government, voting trends, memberships in civic organizations, and hours spent volunteering” (What is, 2011). Researchers are attempting to compile new surveys that will give the concept of social capital a more definitive meaning. There are several examples of social capital, like civic organizations, community organizations, and scholastic communities that can significantly contribute to the overall organizational platform. Numerous studies, both qualitative and quantitative, have participated in gathering information on the effects that social capital can have on an organization. several studies have used numerous indicators of “trust and civic norms” extracted from the World Values Survey to sample market economies use these measures as alternatives to determine the strength of civic relations (What is, 2011). These studies tested two different propositions on the effects of social capital on economic growth, the "Olson effects", which associates stifle growth through rent-seeking, and "Putnam effects", which associates the facilitation of growth by increasing trust (What is, 2011). Other studies have constructed a measure of social capital in rural Tanzania through the use of data from the Tanzania Social Capital and Poverty Survey (SCPS) (What is, 2011). The survey sought to inquire about the extent and characteristics of the communal associational activity as well as their trust in various institutions and individuals (What is, 2011). This measure of social capital was matched with data regarding household income in the same villages from both from the SCPS and an earlier household survey conducted by the Human Resources Development Survey (What is, 2011). An extension of earlier work was from various researchers used the concepts of ethnic diversity, social mobility, and the prevalence of telephone services in several sub-Saharan African countries as substitutes to determine the depth of social networks (What is, 2011). Several related items were combined into an index of "social capability", revealing that this can clarify important quantities of disparity in public economic growth rates (What is, 2011). The development of civic environmental projects at local, state, and national levels, as well as various school reform approaches is notable du to their participatory pedagogies and their conception of these organizations as the nucleus of community actors (Sirianni & Friedland, 2011). There are many forms of social capital that can either hinder or contribute to public problem solving (Sirianni & Friedland, 2011). Conclusion The indicated research supports the concept that social capital can be an exemplary asset to organizational management and significantly contribute to organizational growth when these communal forums are properly coalesced. The key to proper implementation of these assets is management. Organization of social capital requires communal activism in order to prevent the decline of such assets (Sirianni & Friedland, 2011). Community development can also be an asset to organizations through increased positivity of the individuals within the community that can easily translate into increased productivity in the work environment (Sirianni & Friedland, 2011). Increased worker productivity translates into increased profitability, job satisfaction, and lower turnover rates (Sirianni & Friedland, 2011). The designation of specific policies to support the building of social capital can also foster diversity and communication (Sirianni & Friedland, 2011). References Chenhall, R., Hall, M., & Smith, D. (2010). Social capital and management control systems: A study of a non-government organization. Accounting, Organizations and Society, 35 (8), 737. Retrieved July 8, 2011, from ABI/INFORM Global. (Document ID: 2241195611). Sirianni, C. & Friedland, L. Social Capital. CPN Civic Dictionary. Retrieved from http://www.cpn.org/tools/dictionary/capital.html What is Social Capital? (2011). The World Bank. 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